Palm Corporation is owned 60 percent by Jay and 40 percent by Scott. Jay and Scott are unrelated individuals. Palm’s two principal assets are cash of $140,000 and a building that Palm purchased 10 years ago and that now has an adjusted basis of $80,000 and a fair market value of $60,000. What amount oflo ss is recognized by Palm Corporation if it makes the following alternative distributions in complete liquidation?

a. Palm distributes the building plus

$60,000 in cash to Jay and $80,000 in cash to Scott.

b. Palm distributes $120,000 in cash to Jay and the building plus $20,000 in cash to Scott.

c. Palm distributes 60 percent of the cash and a 60 percent interest in the building to Jay and 40 percent of the cash and a 40 percent interest in the building to Scott.

d. Same as (c), except that the building had been contributed to Palm Corporation by Scott as a contribution to capital during 2018, when the building's basis was $90,000 and its fair market value was $65,000.

e. Same as (c), except that the building had been contributed to Palm Corporation by Jay as a contribution to capital four years ago (during 2015), when the building's basis was $120,000 and its fair market value was $110,000.